(1) A city with a population of more than five hundred fifty thousand that permits a public facility to be constructed or operated by another local government agency, transit authority, or public facility district in a neighborhood with a high poverty level and a high rate of ethnic diversity shall formally request that the entity that is constructing or is operating the public facility assess and mitigate the negative impacts that the facility has had on parking in the surrounding neighborhood. The entity operating or constructing the facility must consider the potential or actual disparate racial, social, and economic impacts of the public facility on residents nearby and develop a mitigation plan, which keeps the residents of the impacted neighborhood whole for the costs of the mitigation strategy, including paying for the costs of any residential parking zone necessitated by the facility causing the impact. The entity operating or constructing the facility may negotiate with other political subdivisions who have a direct interest in having created the negative impacts, but the residents must be held harmless.

(2) For purposes of this section, neighborhood boundaries are defined by the boundaries of community reporting areas, as established in the most recent United States census.

(3) For purposes of this section:

(a) "Public facility" means a project that was completed by December 31, 2014.

(b) A neighborhood has a high poverty level if twelve percent or more of the population is below the poverty level according to the most recent American community survey's five-year estimate.

(c) A neighborhood has a high rate of ethnic diversity if forty percent or more of the population identifies as persons of color according to the most recent American community survey's five-year estimate.